Morningstar will cease qualitative research coverage of BlackRock Latin America on or around Dec. 16, 2022, in order to reallocate our analysts to other strategies. At that time, the last Morningstar Analyst Rating and this research report will be removed; please discontinue using the research report or former research reports issued by Morningstar on this strategy. We recommend users form their own views on it or obtain financial advice. |
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BGF Latin American E2's Average Process Pillar and People Pillar ratings result in a Morningstar Medalist Rating of Neutral. Fees are a weakness here. The strategy's lofty fees are a high hurdle to clear, as it is priced within the highest quintile among peers.
The strategy earns an Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an overweight in yield exposure and an underweight in momentum exposure compared with category peers. High yield exposure is attributed to holding more stocks with high dividend or buyback yields. And low momentum exposure is rooted in holding stocks that are not currently on a winning streak and instead holding those that managers believe are undervalued. The strategy's management team changed completely less than two years ago, so the strategy gets an Average People Pillar rating. This is the result of a recent downgrade from Above Average. The strategy's parent organization earns the firm an Above Average Parent Pillar rating, and this rating is inherited from vehicles belonging to the same branding entity and is indirectly assigned by an analyst. |
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